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TTAU - Tectonic Gold News Story

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Last Trade - 01/03/21

Sector
Basic Materials
Size
Micro Cap
Market Cap £8.89m
Enterprise Value £9.07m
Revenue £219k
Position in Universe 1603rd / 1807

Tectonic Gold Plc: Annual Financial Report for the Year Ended June 2020

Tue 29th December, 2020 10:21am
TECTONIC GOLD PLC  Company Registration No. 05173250   Annual Report and Financial Statements  for the year ended 30 June 2020  

CONTENTS

Page

3                            Company
information           

4                            Chairman’s Statement

5                            Managing Director’s
Statement

6                            Strategic report

8                            Directors’ report

13                          Report of the independent
auditor

17                          Consolidated Statement of
Profit or Loss and Other Comprehensive Income

18                          Statements of Financial
Position

19                          Group Statement of
Changes in Equity

20                          Company Statement of
Changes in Equity

21                          Statements of cash flows

23                          Notes forming part of the
financial statements

COMPANY INFORMATION

 DIRECTORS:                                         Bruce Fulton (Chairman)  Brett Boynton (Managing Director)  Sam Quinn (Executive Director)  Dennis Edmonds (Non-Executive Director – appointed 28 April 2020)    
 SECRETARY:                                         Sam Quinn                                                                                                                                                        
 REGISTERED OFFICE:                                 25 Bilton Road Rugby CV22 7AG United Kingdom T: +61 2 9241 7665                                                                                                  
 COMPANY REGISTRATION NUMBER:                       05173250                                                                                                                                                         
 REGISTRAR AND TRANSFER OFFICE:                     Link Market Services Limited 6th Floor, 65 Gresham Street, London EC2V 7NQ                                                                                       
 SOLICITORS:                                        Mildwaters Consulting LLP Walton House, 25 Bilton Road, Rugby, Warwickshire, CV22 7AG                                                                            
 INDEPENDENT AUDITOR:                               PKF Littlejohn LLP Statutory Auditor 15 Westferry Circus London E14 4HD                                                                                          
 AQUIS STOCK EXCHANGE CORPORATE ADVISER AND BROKER  VSA Capital 15 Eldon Street London EC2M 7LD                                                                                                                      
 BANKERS:                                           Barclays Bank plc 1 Churchill Place London E14 5HP                                                                                                               

CHAIRMAN’S STATEMENT

Dear Shareholders,

I am pleased to present the results for Tectonic Gold Plc for the 12 months to
30 June 2020. This marks the second year of your Company and one that
presented enormous challenges and opportunities for us. From bushfires to
COVID-19 and trade wars we have had to navigate a very tricky market
environment. Gold has once again provided investors safe harbour and with the
arrival of Rio Tinto on our northern fence line earlier in the year we find
ourselves in an enviably good position with a fully funded drilling program
underway, successful exploration to follow up on and new discoveries to
pursue. Further, our joint venture in South Africa is in production and we are
expecting first diamond sales shortly.

Following a successful maiden exploration season in 2018/19 which extended the
mineralisation at the Specimen Hill discovery in Queensland with a 10 hole
drilling program, widespread bushfires in Australia prevented immediate follow
up. The team switched focus to advancing the South African diamond and Mineral
Sands projects instead. The diamond project held in our South African
subsidiary, Deep Blue Minerals Pty Ltd, was successfully taken through an
independent expert review, on the back of which we struck a farm-out deal with
a London listed investment company (Kazera Global Investments Plc). This has
funded the project into production. We have retained a non-diluting 10%
interest in the project that has come along very nicely and we now have first
diamond sales expected before Christmas.

At the time of writing, Tectonic’s 100% owned South African subsidiary,
Whale Head Minerals Pty Ltd, has the first tenement application under review
in South Africa for a mineral sands mining permit on the South African
Government’s diamond leases. These are coincident with our current diamond
joint venture and will enable us to cost effectively mine heavy mineral sands
at the same time as we are extracting the diamond gravels. The geological
process that eroded diamonds from the kimberlitic pipes and took them down the
Orange River to the Atlantic Ocean also brought a range of other valuable
minerals downriver to be washed up and deposited along the beach on the South
African North West Coast. Due to the necessity for extremely tight security
over the diamond mining operations, there has been no commercial prosecution
of the heavy minerals in the diamond mine until now. Tectonic’s testing has
confirmed high grades of heavy minerals coincident with the diamonds and we
are hoping to be the first producer of mineral sands concentrate from this
diamond mine.

With the strengthened gold price on the back of COVID-19 and trade wars
between the USA and China, we were able to successfully raise the funds
required to get back into the field and follow up on our success at Specimen
Hill. Despite stringent cross border travel restrictions due to the pandemic,
we have benefitted from having a strong technical presence in Queensland and
have mobilised a team that is currently running a 10 hole drilling program. In
addition to following up on the 2019 drilling, we are testing a new copper
discovery adjacent to Specimen Hill. This is an important opportunity with the
arrival of Rio Tinto in the belt. We are also putting the first holes into
Mount Cassidy which is our second portfolio project and a very promising
Intrusive Related Gold System discovery.

On 11 March 2020, the World Health Organisation (“WHO”) declared the
Coronavirus disease 2019 (COVID-19) a pandemic. The pandemic has adversely
affected the global economy, including an increase in unemployment, decrease
in consumer demand, interruptions in supply chains, and tight liquidity and
credit conditions. Consequently, governments around the world have announced
monetary and fiscal stimulus packages to minimise the adverse economic impact.
However, the COVID-19 situation is still evolving, and its full economic
impact remains uncertain.

The Company has several assets where the value may be impacted by COVID-19. At
the date these financial statements were approved by the Directors the extent
of the impact COVID-19 on the Company’s assets cannot be reasonably
estimated at this time.

The pandemic has impacted the Company’s operations with Government mandated
bans on mass gatherings and social distancing measures resulting in disruption
to the Company’s operations; this disruption is expected to negatively
impact the ability for the Company to conduct drilling and its parent
entity’s ability to raise capital, refer Going Concern Note 2. 

The Directors and management are continually monitoring and managing the
Company’s operations closely in response to COVID-19 however the extent of
the impact COVID-19 may have on the Company’s future liquidity, financial
performance and position and operations is uncertain and cannot be reasonably
estimated at the date these financial statements were issued.

Thank you to all of our supportive shareholders and stakeholders who have
worked with us, as we move forward with both our gold projects and our
exciting South African project.

Yours sincerely

Bruce Fulton

Chairman

MANAGING DIRECTOR’S STATEMENT

During the year to June 2020 the Company focused primarily on advancing its
South African projects. This was due to site access difficulties on the
Queensland gold projects with bush fires and COVID-19. Following the June year
end, the company successfully raised £402,800 and is, at the time of writing
this report, executing a follow up drilling program at Specimen Hill and
testing initial targets at Mount Cassidy. The delays in site access, whilst
frustrating, enabled management to focus on other opportunities which have
generated significant value for shareholders.

On the 25th of May, Silverstream SECZ, who purchased Tectonic’s legacy
graphite royalty from the sale of our historic Malagasy graphite interests,
listed on the Toronto Stock Exchange and rebranded as VOX Royalty Corp.
(“VOX”). This triggered a conversion of the convertible note we held in
Silverstream as part consideration for the purchase of the royalty and as a
result Tectonic was issued 98,039 shares in VOX.

On the 4(th) of June we announced a deal with a London listed investment
company, Kazera Global Investments Plc (‘Kazera”), to fund the South
African diamond project into production via a farm-out. Tectonic has retained
a non-diluting 10% interest in the project company, Deep Blue Minerals Pty Ltd
(“Deep Blue”) alongside our Black Empowerment partners and Kazera. In
addition, in August, Tectonic purchased 20 million shares in Kazera at 0.5p,
the price of the raise conducted to fund the project into production.
Following the deal, Deep Blue was quickly transformed into an operating entity
with the acquisition of a mining fleet and on boarding of an experienced local
team which Tectonic had been working with for some time. Tectonic director
Dennis Edmonds has taken a Board seat with Kazera and is actively involved
with the on-going development of Deep Blue. At the time of writing of this
report, Deep Blue is in production and first diamond sales are expected prior
to year-end.

In addition to the diamond project, Tectonic pioneered the exploration for
heavy mineral sands within the same government owned diamond mining lease that
Deep Blue operations are in. This project is housed in 100% owned subsidiary,
Whale Head Minerals Pty Ltd (“Whale Head”). Whale Head has lodged the
first Heavy Mineral Sands (“HMS”) mining permit application within the
overlapping diamond lease area and we expect to be the first HMS producer from
the area. This has been a restricted site to date due to security
considerations at the diamond mine, however as an existing operator and local
employer we have been able to negotiate access to the site and demonstrate the
benefits to the local community of running a dual diamond and HMS extraction
and processing operation. There have been significant delays on this permit
application due to travel restrictions preventing the requisite environmental
and regulatory site visits, however we are hopeful that with things
normalising in South Africa we will have the permit prior to year-end. At this
stage we are the registered applicant over key areas and have security of
first rights to those areas until the application review is completed.

On the 9(th) of September we announced a capital raise to fund a ten hole
drilling program in Queensland. This program is currently underway with
initial assays expected prior to year-end and final analysis and
interpretation of the program with independent external review in the first
quarter of next year. The program is targeting key features confirmed by the
2019 campaign with additional drilling density to provide resource calculation
inputs.

In addition, the program will include two holes into our new copper discovery
adjacent to the Specimen Hill gold system. This is important for us as Rio
Tinto applied for a large tenement along our northern boundary at Specimen
Hill in February, which we expect is the start of renewed interest in copper
gold opportunities in Queensland given that many traditional copper mining
countries will likely be struggling with COVID for years to come.

We will also be drilling the first holes into our Mt Cassidy project. This is
a very exciting Intrusive Related Gold System to the north of Specimen Hill
and along the same structure as the famous Mt Morgan copper-gold mine that
produced over 8 million ounces of gold and 387 thousand tonnes of copper in
its 100-year mine life.

It is an exciting time to be in the field again and very rewarding to see
projects we put so much effort into beginning to shine. I thank my fellow
directors, our talented management team and advisers for their effort during
this challenging year that has seen us turnaround shareholder value and
position our company for a highly prospective 2021.

Brett Boynton, CFA

Managing Director 
                                                                                                                                       

STRATEGIC REPORT

For the year ended 30 June 2020

The Directors present their strategic report for Tectonic Gold Plc
(“Tectonic Gold” and/or “the Company”) and its controlled entities
(“the Group”) for the year ended 30 June 2020 (“the reporting
period”).

REVIEW OF THE BUSINESS

Following the successful 2018/19 drilling campaign in Queensland on the
Specimen Hill project, the Company faced bushfires and COVID-19 related
restrictions in access to Queensland, and as a result switched its attention
to the development of its South African interests.

The Company farmed out a majority interest in its subsidiary, Deep Blue
Minerals Pty Ltd, to London listed investment company Kazera Global
Investments Plc and has retained a non-diluting 10% interest. Kazera has
initiated mining under a contract to mine diamonds on the South African
Government’s Alexkor diamond mine. First diamond sales from this project are
expected prior to year-end.

The Company’s 100% owned subsidiary, Whale Head Minerals Pty Ltd, has made
an application for a mining permit to mine (and process) heavy mineral sands
coincident with the diamonds at the Alexkor diamond mining operation.

For further details see the Managing Director’s Statement on Page 5.

RESULTS AND COMPARATIVE INFORMATION

The Group reports a profit after tax for the reporting period of £356,682
from continuing operations (2019: £824,874 loss) and a loss after tax of
£73,934 from discontinued operations (2019: £31,721).

On 17 April 2019, the Company established Deep Blue Minerals Pty Ltd and as
announced on 4 June 2020, the Company sold a majority interest in Deep Blue
Minerals Pty Ltd effective on 17 June 2020. The financial information for the
reporting period includes that of Tectonic Gold Plc and its controlled
entities for the whole reporting period and that of Deep Blue Minerals Pty Ltd
for the reporting period to 17 June 2020.

On 14 February 2020, the Company established Whale Head Minerals Pty Ltd. For
accounting and reporting purposes, this Company has remained dormant since the
date of incorporation to the end of the reporting period.

DIVIDENDS

The Directors do not recommend the payment of a dividend and no amount has
been paid or declared by way of a dividend to the date of this report (2019:
£nil).

KEY PERFORMANCE INDICATORS

The key performance indicators are set out below:

 STATISTICS                                               30 June 2020  30 June 2019 
 Net asset value                                            £2,809,873    £2,509,709 
 Net asset value per share                                     0.0040p       0.0036p 
 Closing share price at the end of the reporting period          0.32p          0.6p 
 Market capitalisation                                         £2.232m       £4.185m 

KEY RISKS AND UNCERTAINTIES

Currently the principal risk lies in securing additional funding as and when
necessary to continue with the core research and exploration business. The
Company’s projects are in the exploration phase of development and do not
generate revenue. If the Company is unsuccessful in monetising its research
developments or its exploration projects by attracting development partners or
divesting assets it may need to raise additional capital as other junior
exploration companies do from time to time. This risk is mitigated through the
Company’s corporate development efforts and active engagement with a number
of gold mining companies, project funders and other investors for the purpose
of attracting investment in one or more of the Company’s projects or
acquisition of one of the assets in line with the business plan.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Details of the Company's financial risk management objectives and policies are
set out in Note 25 to these financial statements.

STRATEGIC REPORT (continued)

For the year ended 30 June 2020

PROMOTION OF THE COMPANY FOR THE BENEFIT OF THE MEMBERS AS A WHOLE

The Director’s believe they have acted in the way most likely to promote the
success of the Company for the benefit of its members as a whole, as required
by s172 of the Companies Act 2006.

The requirements of s172 are for the Directors to:

-         Consider the likely consequences of any decision in the long
term,

-         Act fairly between the members of the Company,

-         Maintain a reputation for high standards of business
conduct,

-         Consider the interests of the Company’s employees,

-         Foster the Company’s relationships with suppliers,
customers and others, and

-         Consider the impact of the Company’s operations on the
community and the environment.

The Company is quoted on the AQUIS Stock Exchange (formerly NEX) and its
members will be fully aware, through detailed announcements, shareholder
meetings and financial communications, of the Board’s broad and specific
intentions and the rationale for its decisions.

When selecting investments, issues such as the impact on the community and the
environment have actively been taken into consideration. 

The Company pays its employees and creditors promptly and keeps its costs to a
minimum to protect shareholders funds.

This report was approved by the Board of Directors on 27 December 2020 and
signed on its behalf by:

Brett Boynton

Director

DIRECTORS’ REPORT

For the year ended 30 June 2020

The Directors present their report and the audited consolidated financial
statements of Tectonic Gold plc (“Tectonic Gold” or the “Company”) and
its controlled entities (“Consolidated Entity” or “Group”) for the
year ended 30 June 2020.

DIRECTORS

The Board comprised the following directors who served throughout the year and
up to the date of this report save where disclosed otherwise:

 Name            Position                Date Appointed/Resignation                                                                         
 Bruce Fulton    Non-Executive Chairman  Appointed 25 June 2018                                                                             
 Brett Boynton   Managing Director       Managing Director and Chief Executive Officer appointed 26 May 2015                                
 Sam Quinn       Executive Director      Appointed 20 February 2017                                                                         
 Dennis Edmonds  Non-Executive Director  Appointed 28 April 2020                                                                            
 Zeg Choudhry    Non-Executive Director  Appointed 19 September 2016 / Resigned 1 December 2019                                             

DIRECTORS’ INTERESTS

The Directors’ interests in the share capital of the Company at 30 June
2020, held either directly or through related parties, were as follows:

 Name of director  Number of ordinary shares  % of ordinary share capital and voting rights  
 Bruce Fulton                       6,467,358                                           0.77 
 Brett Boynton                    137,139,590                                          16.28 
 Sam Quinn                          2,512,000                                           0.29 
 Dennis Edmonds                             -                                              - 
                                  146,118,948                                          22.33 

Details of the options granted to or held by the Directors or former Directors
are as follows:

 Name of director or former director  Balance 30 June 2019  Options granted  Options lapsed  Balance 30 June 2020*  Number vested**  Grant date  Average exercise price  Average date of expiry  
 B Fulton                                        10,000,000                                -             10,000,000        3,333,333   25-Jun-18                      2p               25-Jun-22 
 B Boynton                                       12,000,000                -               -             12,000,000        4,000,000   25-Jun-18                      2p               25-Jun-22 
 S Quinn                                         12,000,000                -               -             12,000,000        4,000,000   25-Jun-18                      2p               25-Jun-22 
 D Edmonds                                                -                -               -                      -                -           -                       -                       - 
 *or at date of cessation if earlier. ** The options vest in three tranches as follows: - 1/3 of the Options vested on 25 June 2018; - 1/3 of the Options vest on 25 December 2018 provided that on or after such date, certain performance conditions have been satisfied; and - 1/3 of the Options vest on 25 June 2019 provided that on or after such date certain performance condition have been satisfied. 

The Company has made qualifying third-party indemnity provisions for the
benefit of the Directors in the form of Directors’ and Officers’ Liability
insurance during the year which remain in force at the date of this report.

DIRECTORS’ REPORT (continued)

For the year ended 30 June 2020

DONATIONS

The Company did not make any political or charitable donations during the
reporting period (30 June 2019: nil).

EMPLOYEE CONSULTATION

The Company places considerable value on the involvement of its employees and
has continued to keep them informed on matters affecting them as employees and
on various factors affecting the performance of the Company. This is achieved
through formal and informal meetings. Equal opportunity is given to all
employees regardless of their sex, age, religion or ethnic origin.

POST YEAR END EVENTS

A list of post year events has been included in Note 29.

GOING CONCERN    

The adoption of the going concern basis by the Directors is following a review
of the current position of the Company and Group and the forecasts for at
least the next 12 months. The cash and tradable securities together with the
funds receivable and funding support received from the Drilling Warrants (See
Note 29) are sufficient to enable to Company to meet its obligations and
continue to operate for the foreseeable future. Thus, the Directors continue
to adopt the going concern basis in preparing the financial statements. It is
beyond the scope of the Directors to predict any future impact of COVID-19 on
any of these funding sources however and if for any reason it is not possible
to sell any tradeable securities or State Government funding is not secured,
this may impact the ability of the Company to meet its obligations and
continue to operate as envisaged. Further details regarding the adoption of
the going concern basis and uncertainty surrounding it can be found in Note 2
of these financial statements.

On 11 March 2020, the World Health Organisation (“WHO”) declared the
Coronavirus disease 2019 (COVID-19) a pandemic. The pandemic has adversely
affected the global economy, including an increase in unemployment, decrease
in consumer demand, interruptions in supply chains, and tight liquidity and
credit conditions. Consequently, governments around the world have announced
monetary and fiscal stimulus packages to minimise the adverse economic impact.
However, the COVID-19 situation is still evolving, and its full economic
impact remains uncertain.

The Directors and management are continually monitoring and managing the
Company’s operations closely in response to COVID-19.

DIRECTORS’ REPORT (continued)

For the year ended 30 June 2020

DISCLOSURE OF INFORMATION TO THE AUDITORS

In the case of each of the persons who are directors of the Company at the
date when this report is approved:

·      So far as each director is aware, there is no relevant audit
information of which the Company’s auditors are unaware; and

·      Each of the directors has taken all steps that they ought to have
taken as a director to make themselves aware of any relevant audit information
and to establish that the auditors are aware of the information.

This information is given and should be interpreted in accordance with the
provisions of Section 418 of the Companies Act 2006.

AUDITOR

PKF Littlejohn LLP have expressed their willingness to continue in office as
auditor and it is expected that a resolution to reappoint them will be
proposed at the next annual general meeting.

The Board as a whole considers the appointment of external auditors, including
their independence, specifically including the nature and scope of non-audit
services provided.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing the annual report and the
financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each
financial year. Under that law the directors have prepared the Group and
Company financial statements in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union, and as regards
the Company financial statements, as applied in accordance with the provisions
of the Companies Act 2006. Under company law, the directors must not approve
the financial statements unless they are satisfied that they give a true and
fair view of the state of affairs of the Group and Company and of the profit
or loss of the Group and Company for that period. In preparing these financial
statements, the directors are required to:

·      select suitable accounting policies and then apply them
consistently;

·      state whether applicable IFRSs have been followed, subject to any
material departures disclosed and explained in the financial statements;

·      make judgements and accounting estimates that are reasonable and
prudent; and

·      prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group and Company will continue
in business.

The directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Group and Company’s transactions and
disclose with reasonable accuracy at any time the financial position of the
Group and Company and enable them to ensure that the financial statements
comply with the Companies Act 2006.

The directors are also responsible for safeguarding the assets of the Group
and Company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.

CORPORATE GOVERNANCE  

The requirements of the 2016 UK Corporate Governance Code (“the Code”), as
issued by the Financial Reporting Council, are not mandatory for companies
traded on AQUIS Stock Exchange. The Directors recognise the value of the Code
and apply the recommendations in so far as it is appropriate for a Company of
its size.

DIRECTORS’ REPORT (continued)

For the year ended 30 June 2020

BOARD OF DIRECTORS

The Company supports the concept of an effective Board leading and controlling
the Company.  The Board of Directors is responsible for approving Company
policy and strategy.  It meets regularly and has a schedule of matters
specifically reserved to it for decision.  All Directors have access to
advice from independent professionals at the Company's expense. Training is
available for new and existing Directors, as necessary.

The Board consists of the Non-Executive Chairman, Bruce Fulton, Managing
Director, Brett Boynton, Executive Director, Sam Quinn and Non-Executive
director, Dennis Edmonds.

Since Admission to the AQUIS Stock Exchange on 25 June 2018, the Board has
established properly constituted audit, remuneration and AQUIS Stock Exchange
compliance committees with formally delegated duties and responsibilities, a
summary of which is set out below.

AUDIT COMMITTEE

The Audit Committee comprises Bruce Fulton (Chairman), Sam Quinn and the Chief
Financial Officer, Anne Adaley. The Committee meets at least twice a year and
is responsible for ensuring the financial performance of the Company is
properly reported on and monitored. It liaises with the auditor and reviews
the reports from the auditor relating to the financial statements.

REMUNERATION COMMITTEE

The Remuneration Committee comprises Bruce Fulton (Chairman) and Sam Quinn.
The Committee meets at least twice a year and is responsible for reviewing the
performance of Executive Directors and sets the scale and structure of their
remuneration on the basis of their service agreements, with due regard to the
interests of the shareholders and the performance of the Company.

AQUIS STOCK EXCHANGE COMPLIANCE COMMITTEE

The role of the AQUIS Stock Exchange compliance committee is to ensure that
the Company has in place sufficient procedures, resources and controls to
enable it to comply with the AQUIS Stock Exchange Rules. The AQUIS Stock
Exchange compliance committee make recommendations to the Board and
proactively liaise with the Company’s AQUIS Stock Exchange Corporate Adviser
on compliance with the AQUIS Stock Exchange Rules. The AQUIS Stock Exchange
compliance committee also monitors the Company’s procedures to approve any
share dealings by directors or employees in accordance with the Company’s
share dealing code. The members of the AQUIS Stock Exchange compliance
committee are Brett Boynton (Chairman), Sam Quinn and Dennis Edmonds.

SHARE DEALING CODE

The Company has adopted a share dealing code for dealings in securities of the
Company by directors and certain employees which is appropriate for a company
whose shares are traded on the AQUIS Stock Exchange. This will constitute the
Company’s share dealing policy for the purpose of compliance with UK
legislation including the Market Abuse Regulation and the relevant part of the
AQUIS Stock Exchange Rules. It should be noted that the insider dealing
legislation set out in the UK Criminal Justice Act 1993, as well as provisions
relating to market abuse, also apply to the Company and dealings in Ordinary
Shares.

COMMUNICATIONS WITH SHAREHOLDERS

Communications with shareholders are given a high priority by the
management.  In addition to the publication of an annual report and an
interim report, there is regular dialogue with shareholders and analysts. 
The Annual General Meeting is viewed as a forum for communicating with
shareholders, particularly private investors.  Shareholders may question the
Managing Director and other members of the Board at the Annual General
Meeting.

INTERNAL CONTROL

The Directors acknowledge they are responsible for the Company’s system of
internal control and for reviewing the effectiveness of these systems. The
risk management process and systems of internal control are designed to manage
rather than eliminate the risk of the Company failing to achieve its strategic
objectives. It should be recognised that such systems can only provide
reasonable and not absolute assurance against material misstatement or loss.
The Company has well established procedures which are considered adequate
given the size of the business.

DIRECTORS’ REPORT (continued)

For the year ended 30 June 2020

REMUNERATION

The remuneration of the directors has been fixed by the Board as a whole. The
Board seeks to provide appropriate reward for the skill and time commitment
required so as to retain the right calibre of director at a cost to the
Company which reflects current market rates.

Details of directors’ fees and of payments made to directors for
professional services rendered are set out in Note 8 to the financial
statements and details of the directors’ share options are set out in the
Directors’ Report.

RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE ANNUAL FINANCIAL
REPORT

We confirm that to the best of our knowledge:

·      the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company and
the undertakings included in the consolidation taken as a whole; and

·      the Directors’ report includes a fair review of the development
and performance of the business and the position of the issuer and the
undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face.

This report was approved by the Board of Directors on 27 December 2020 and
signed on its behalf by:

Brett Boynton

Director

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TECTONIC GOLD PLC

For the year ended 30 June 2020

Opinion

We have audited the financial statements of Tectonic Gold Plc (the ‘parent
company’) and its subsidiaries (the ‘group’) for the year ended 30 June
2020 which comprise the Consolidated Statement of Profit or Loss and Other
Comprehensive Income, the Group and Company Statements of Financial Position,
the Consolidated and Company Statements of Changes in Equity, the Consolidated
and Company Statements of Cash Flows and notes to the financial statements,
including a summary of significant accounting policies. The financial
reporting framework that has been applied in their preparation is applicable
law and International Financial Reporting Standards (IFRSs) as adopted by the
European Union and as regards the parent company financial statements, as
applied in accordance with the provision of the Companies Act 2006.

In our opinion:

·      the financial statements give a true and fair view of the state
of the group’s and of the parent company’s affairs as at 30 June 2020 and
of the group’s and parent company’s profit for the year then ended;

·      the group financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union;

·      the parent company financial statements have been properly
prepared in accordance with IFRSs as adopted by the European Union and as
applied in accordance with the provisions of the Companies Act 2006; and

·      the financial statements have been prepared in accordance with
the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the
audit of the financial statements section of our report. We are independent of
the group and parent company in accordance with the ethical requirements that
are relevant to our audit of the financial statements in the UK, including the
FRC’s Ethical Standard as applied to listed entities, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to
which the ISAs (UK) require us to report to you where:

·      the directors’ use of the going concern basis of accounting in
the preparation of the financial statements is not appropriate; or

·      the directors have not disclosed in the financial statements any
identified material uncertainties that may cast significant doubt about the
group’s or the parent company’s ability to continue to adopt the going
concern basis of accounting for a period of at least twelve months from the
date when the financial statements are authorised for issue.

Our application of materiality

Materiality for the group financial statements as a whole was set at
£101,000. This was calculated based on a benchmark of 3% of gross assets
which, based on our professional judgment, we determined to be the main driver
of the business as the group is still in the exploration stage and therefore
no revenues are currently being generated. Current and potential investors
will therefore be most interested in the recoverability of the exploration and
evaluation assets. Group performance materiality was set at £80,800.

Materiality for the parent company financial statements was set at £59,500,
determined with reference to a benchmark of 3% of gross assets. We assessed
this as the key benchmark on the basis that the parent is a holding company
whose value is derived from the underlying subsidiary. Company performance
materiality was set at £47,600.

Materiality for the remaining significant component of the group was set at
£92,000 based on 3% of gross assets. Performance materiality for the
significant component was set at £73,600 and all other components.

We reported to the Audit Committee all corrected and uncorrected misstatements
we identified throughout our audit with a value in excess of £5,050, in
addition to other audit misstatements below that threshold that we believed
warranted reporting on qualitative grounds.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TECTONIC GOLD PLC (CONTINUED)

For the year ended 30 June 2020

An overview of the scope of our audit

The scope of our audit was influenced by our evaluation of materiality and our
assessment of the risks of material misstatement in the group and parent
company financial statements. In particular, we assessed the areas involving
significant accounting estimates and judgement by the directors as risks for
our audit. This included the carrying value of exploration assets and
investments as well as future events that are inherently uncertain and could
have an impact on the group and parent company’s ability to continue as a
going concern. These were judged to be the most significant assessed risks of
material misstatement and therefore reported as key audit matters below.

The significant component based in Australia was audited by a component
auditor. We had oversight of, and regular communication with, the component
auditor who was operating under our instructions. The component auditor
supplied their working papers for our review. This, along with further
discussions with the component auditor, gave us sufficient appropriate
evidence for our audit opinion on the Group financial statements.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were
of most significance in our audit of the financial statements of the current
period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) we identified, including those
which had the greatest effect on: the overall audit strategy, the allocation
of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.

 Key audit matter                                                                                                                                                                                                                                                How the scope of our audit responded to the key audit matter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 Going concern (group and parent company) Note 2 of the financial statements sets out the directors assessment of the appropriateness of the going concern basis of preparation. This explains that the group and parent company expect to receive future funding We performed the following procedures to address this risk: · Critically assessed cash flow forecasts and budgets; · Undertook sensitivity analysis on management’s forecasts; · Discussed the matters with management; · Reviewed the group’s assessment of the impact of COVID-19 using our knowledge of the business and the industry that the group and parent company operates in; · Evaluated the adequacy of disclosures made in the financial statements.  We have nothing material to add or draw attention to in respect of the conclusions in relation to going concern section of our audit report.                                       
 and support to enable their obligations to be met and ensure they continue to operate in the foreseeable future. There is a risk that the group and parent company are unable to access that further funding and support, especially in light of the ongoing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 uncertainties arising from the COVID-19 pandemic.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Carrying value of mining exploration and evaluation expenditure (group) As disclosed in note 15 of the financial statements, exploration and evaluation expenditure as at 30 June 2020 was £2,695,681. The recoverability of this asset is highly judgmental due Our work in this area included:  · Confirmation that the group has good title to the applicable exploration licences, and has fulfilled any specific conditions therein particularly having regard to minimum expenditure requirements; · Review and substantive testing of capitalised costs including consideration of appropriateness for capitalisation under IFRS 6; · Assessment of progress at the individual projects during the year and post year-end; and · Consideration of management’s impairment reviews in light of impairment indicators identified in accordance with IFRS 6, including corroboration and challenge thereof.        
 to the early stage of the projects and the contingent nature of obtaining a mining permit. The COVID-19 pandemic impact on the current economic climate means there is also a greater risk that the carrying value of exploration and evaluation assets are not                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 recoverable and thus require impairment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 Recoverability of investments and subsidiary loans (parent company) The parent company has significant investments in its subsidiary entities which is supported by the underlying projects. As at 30 June 2020, and as shown in note 16, this investment was   We performed the following procedures to address this risk: · Reviewed the loan agreement and repayment terms; · Reviewed the net assets of the underlying subsidiaries and the exploration projects therein; · Reviewed and challenged the impairment considerations by management; · Verified the carrying value of the investments; and · Assessed Signature Gold’s ability to repay the outstanding loan amount.  We consider that management’s judgement in respect of the recoverability of the parent company investments and loan to one of its subsidiaries is materially reasonable.                                                        
 £3,605,259. Note 12 also reports a loan of £1,344,409 provided by the parent company to its subsidiary, Signature Gold, as at 30 June 2020. There is a risk that the investment in the subsidiaries, along with the loan, are impaired as the subsidiaries have                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 not started to produce revenues. Therefore, it is necessary to assess the fair value of the holdings at year end. There is also a risk of material misstatement around the recoverability of the significant loan balance with Signature Gold.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TECTONIC GOLD PLC (CONTINUED)

For the year ended 30 June 2020

Other information

The other information comprises the information included in the annual report,
other than the financial statements and our auditor’s report thereon. The
directors are responsible for the other information.  Our opinion on the
group and parent company financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon. In
connection with our audit of the financial statements, our responsibility is
to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether there is a material
misstatement in the financial statements or a material misstatement of the
other information. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to
report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

·      the information given in the strategic report and the
directors’ report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and

·      the strategic report and the directors’ report have been
prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent
company and their environment obtained in the course of the audit, we have not
identified material misstatements in the strategic report or the directors’
report.

We have nothing to report in respect of the following matters in relation to
which the Companies Act 2006 requires us to report to you if, in our opinion:

·      adequate accounting records have not been kept by the parent
company, or returns adequate for our audit have not been received from
branches not visited by us; or

·      the parent company financial statements are not in agreement with
the accounting records and returns; or

·      certain disclosures of directors’ remuneration specified by law
are not made; or

·      we have not received all the information and explanations we
require for our audit.

Responsibilities of directors

As explained more fully in the statement of directors’ responsibilities, the
directors are responsible for the preparation of the group and parent company
financial statements and for being satisfied that they give a true and fair
view, and for such internal control as the directors determine is necessary to
enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.

In preparing the group and parent company financial statements, the directors
are responsible for assessing the group’s and the parent company’s ability
to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or the parent company or to
cease operations, or have no realistic alternative but to do so.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TECTONIC GOLD PLC (CONTINUED)

For the year ended 30 June 2020

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.

A further description of our responsibilities for the audit of the financial
statements is located on the Financial Reporting Council’s website at:
https:www.frc.org.uk/auditorsresponsibilities. This description forms part of
our auditor’s report.

Use of our report

This report is made solely to the company's members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the company's members those matters we
are required to state to them in an auditor’s report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company's members as a
body, for our audit work, for this report, or for the opinions we have formed.

Eric Hindson (Senior Statutory
Auditor)                                                                        
15 Westferry Circus

For and on behalf of PKF Littlejohn
LLP                                                                                 
Canary Wharf

Statutory
Auditor                                                                                                                  
London E14 4HD

27 December 2020

                                                                                NOTE       2020         2019 
                                                                                  GBP                    GBP 
 Revenue from continuing operations                                               5     294,866       24,471 
 Expenses from continuing operations:                                                                        
 Accounting and audit fees                                                             (59,715)     (88,526) 
 Administration and office costs                                                       (10,496)     (26,865) 
 Corporate costs                                                                       (71,492)     (96,729) 
 Amortisation and depreciation                                                          (1,515)      (1,338) 
 Employee benefits, management fees and on costs                                  8       5,682     (76,742) 
 Exploration and tenement costs                                                        (10,231)     (29,747) 
 Insurance                                                                              (2,429)     (17,233) 
 Legal expenses                                                                               -          396 
 Impairment of exploration costs                                                              -    (703,936) 
 Bad debt expense                                                                             -     (64,173) 
 Business development costs                                                             (9,257)            - 
 Other expenses                                                                         (5,578)     (38,945) 
 Net fair value gain on financial assets at fair value through profit and loss           77,750            - 
 Profit/ (loss) from continuing operations before income tax                            207,585  (1,119,367) 
 Income tax benefit                                                               9     149,097      326,214 
 Profit/ (loss) for the year from continuing operations                                 356,682    (793,153) 
                                                                                                             
 Discontinued operations                                                                                     
 (Loss) for the year from discontinued operations                                13    (73,934)     (31,721) 
 Profit/ (loss) for the year attributable to the owners of the Company                  282,748    (824,874) 
                                                                                                             
 Other comprehensive income:                                                                                 
 Items that may be subsequently reclassified to profit and loss:                                             
 Exchange differences on translation of foreign subsidiaries                             17,416     (34,430) 
 Total comprehensive profit/ (loss) for the year                                        300,162    (859,304) 
                                                                                                             
                                                                                                             
                                                                                                             
 Earnings per share attributable to owners of the company                                                    
 Basic and diluted (pence per share)                                             10        0.04      (0.120) 

The accompanying notes form part of these financial statements.

                                                          NOTE      30-Jun-20     30-Jun-19     30-Jun-20     30-Jun-19 
                                                          GROUP                       GROUP       COMPANY       COMPANY 
                                                            GBP                         GBP           GBP           GBP 
 ASSETS                                                                                                                 
 NON-CURRENT ASSETS                                                                                                     
 Trade and other receivables                               12               -             -     1,344,409     1,341,710 
 Plant and equipment                                       14           5,075         6,603             -             - 
 Exploration and evaluation expenditure                    15       2,695,681     2,663,707             -             - 
 Investments in controlled entities                        17               -             -     3,605,254     3,605,259 
 Financial assets at fair value through profit and loss    16         224,407             -       224,407             - 
 TOTAL NON-CURRENT ASSETS                                           2,925,163     2,670,310     5,174,070     4,946,969 
                                                                                                                        
 CURRENT ASSETS                                                                                                         
 Cash and cash equivalents                                 11          52,734        34,875        26,415        22,846 
 Trade and other receivables                               12           1,865         7,913             -             - 
 Financial assets at fair value through profit and loss    16               -        40,122             -        40,122 
 Other assets                                              19         357,792       360,412         5,100         5,100 
 TOTAL CURRENT ASSETS                                                 412,391       443,322        31,515        68,068 
 TOTAL ASSETS                                                       3,337,554     3,113,632     5,205,585     5,015,037 
                                                                                                                        
 EQUITY                                                                                                                 
 Share capital                                             23       6,100,615     6,100,615     6,100,615     6,100,616 
 Share premium account                                             60,146,216    60,146,216    60,146,216    60,146,216 
 RTO Reserve                                               24    (57,976,182)  (57,976,182)             -             - 
 Warrant reserves                                          24          95,098        95,098        95,098        95,098 
 Foreign exchange translation reserves                     24        (75,265)      (92,681)             -             - 
 Accumulated losses                                               (5,480,609)   (5,763,357)  (61,261,233)  (61,439,800) 
 TOTAL EQUITY                                                       2,809,873     2,509,709     5,080,696     4,902,130 
                                                                                                                        
 LIABILITIES                                                                                                            
 NON-CURRENT LIABILITIES                                                                                                
 Trade and other payables                                  20          16,060        15,913             -             - 
 Borrowings                                                21         226,908       236,793        56.685             - 
 Employee benefits                                         22               -        11,363             -             - 
 TOTAL NON-CURRENT LIABILITES                                         242,968       264,069        56,685             - 
                                                                                                                        
 CURRENT LIABILITIES                                                                                                    
 Trade and other payables                                  20         284,712       275,680        68,204        62,907 
 Borrowings                                                21               -        50,000             -        50,000 
 Employee benefits                                         22               -        14,174             -             - 
 TOTAL CURRENT LIABILITES                                             284,714       339,854        68,204       112,907 
 TOTAL LIABILITIES                                                    527,682       603,923       124,889       112,907 
 TOTAL EQUITY AND LIBAILITIES                                       3,337,554     3,113,632     5,205,585     5,015,037 

As permitted by s408 Companies Act 2006, the Company has not presented its own
profit and loss account and related notes. The Company’s profit for the year
was £178,567 (2019: loss of £247,215).

These financial statements were approved by the Board of Directors on 27
December 2020 and signed on their behalf by:

Brett Boynton

Director                                                                                                          

Company number: 05173250   

The accompanying notes form part of these financial statements.

 GROUP  FOR THE YEAR ENDED 30 JUNE 2019                   ISSUED  CAPITAL  SHARE  PREMIUM  WARRANT  RESERVE  RTO  RESERVE  FOREIGN  CURRENCY  RESERVE  ACCUMULATED LOSSES      TOTAL 
                                                                      GBP             GBP               GBP           GBP                         GBP                 GBP        GBP 
 Balance at 1 July 2018                                         6,099,615      60,117,216            95,098  (57,976,182)                    (58,251)         (4,938,483)  3,339,013 
 Total comprehensive loss for the period                                -               -                 -             -                    (34,430)           (824,874)  (859,304) 
 Transactions with owners, recorded directly in equity:                                                                                                                              
 Shares Issued – 1 June 2019                                        1,000          29,000                 -             -                           -                   -     30,000 
 Balance as at 30 June 2019                                     6,100,615      60,146,216            95,098  (57,976,182)                    (92,681)         (5,763,357)  2,509,709 

   

 GROUP  FOR THE YEAR ENDED 30 JUNE 2020                   ISSUED  CAPITAL  SHARE  PREMIUM  WARRANT  RESERVE  RTO  RESERVE  FOREIGN  CURRENCY  RESERVE  ACCUMULATED LOSSES      TOTAL 
                                                                      GBP             GBP               GBP           GBP                         GBP                 GBP        GBP 
 Balance at 1 July 2019                                         6,100,615      60,146,216            95,098  (57,976,182)                    (92,681)         (5,763,357)  2,509,709 
 Total comprehensive income for the period                                                                                                                        282,748    282,748 
 Transactions with owners, recorded directly in equity:                                                                                                                              
 Foreign Currency Translation Reserve                                   -               -                 -             -                      17,416                   -     17,416 
 Fair value of warrants issued                                          -               -                 -             -                           -                   -          - 
 Balance as at 30 June 2020                                     6,100,615      60,146,216            95,098  (57,976,182)                    (75,265)         (5,480,609)  2,809,873 

The accompanying notes form part of these financial statements

 COMPANY  FOR THE YEAR ENDED 30 JUNE 2019                 SHARE  CAPITAL  SHARE  PREMIUM  WARRANT RESERVES  ACCUMULATED LOSSES  TOTAL  EQUITY 
                                                                     GBP             GBP               GBP                 GBP            GBP 
 Balance at 1 July 2018                                        6,099,615      60,117,216            95,098        (61,192,585)      5,119,344 
 Total comprehensive loss for the period                               -               -                 -           (247,215)      (247,215) 
 Transactions with owners, recorded directly in equity:                                                                                       
 Issue of shares and warrants:                                                                                                                
 Shares issued -1 June 2019                                        1,000          29,000                 -                   -         30,000 
 Balance at 30 June 2019                                       6,100,615      60,146,216            95,098        (61,439,800)      4,902,129 

   

 COMPANY  FOR THE YEAR ENDED 30 JUNE 2020    SHARE  CAPITAL  SHARE  PREMIUM  WARRANT RESERVES  ACCUMULATED LOSSES  TOTAL  EQUITY 
                                                        GBP             GBP               GBP                 GBP            GBP 
 Balance at 1 July 2019                           6,100,615      60,146,216            95,098        (61,439,800)      4,902,129 
 Total comprehensive income for the period                -               -                 -             178,567        178.567 
 Balance at 30 June 2020                          6,100,615      60,146,216            95,098        (61,261,233)      5,080,696 

The accompanying notes form part of these financial statements

                                                                           30-Jun-20  30-Jun-19 
                                                                    NOTE       GROUP      GROUP 
                                                                                 GBP        GBP 
 CASH FLOWS FROM OPERATING ACTIVITIES                                                           
 Cash receipts in the course of operations                                    20,136     62,832 
 Cash payments in the course of operations                                 (242,654)  (586,464) 
 Research and Development Tax Incentive Claim                                149,097    326,214 
 Interest received                                                             5,541          - 
 Net cash used in operating activities                               25     (67,880)  (197,418) 
                                                                                                
 CASH FLOWS USED IN INVESTING ACTIVITIES                                                        
 Payments for exploration and evaluation expenditure                        (58,777)  (279,351) 
 Proceeds from new owner of Deep Blue Minerals Pty Ltd                            56          - 
 Payments for property, plant and equipment                                        -    (6,911) 
 Payment for security deposit                                                  (266)      (276) 
 Refund of security deposit                                                    2,665          - 
 Proceeds from sale of investments                                            86,844          - 
 Net cash used in investing activities                                        30,522  (286,538) 
                                                                                                
 CASH FLOWS FROM FINANCING ACTIVITIES                                                           
 Proceeds from issue of shares                                                     -    280,000 
 Proceeds from borrowings                                                     66,048     89,418 
 Loans to Tectonic SA                                                       (10,830)          - 
 Net cash provided by financing activities                                    55,218    369,418 
                                                                                                
 Net (decrease)/increase in cash held and cash equivalents                    17,858  (114,539) 
 Cash and cash equivalents at the beginning of the period                     34,875    149,397 
 Effects of exchange rate changes on cash and cash equivalents                     -         17 
 Cash and cash equivalents at the end of the period                           52,734     34,875 

The accompanying notes form part of these financial statements.

                                                                       30-Jun-20  30-Jun-19 
                                                                NOTE     COMPANY    COMPANY 
                                                                             GBP        GBP 
 CASH FLOWS FROM OPERATING ACTIVITIES                                                       
 Cash receipts in the course of operations                                20,136     40,380 
 Cash payments in the course of operations                              (87,884)  (246,664) 
 Loan to Signature Gold Pty Ltd                                         (17,500)          - 
 Interest received                                                         5,179          - 
 Net cash used in operating activities                           25     (80,069)  (206,284) 
                                                                                            
 CASH FLOWS USED IN INVESTING ACTIVITIES                                                    
 Proceeds from the sale of investments                                    86,844          - 
 Loan to Deep Blue Minerals Pty Ltd                                     (53,206)   (15,000) 
 Loan to Signature Gold Pty Ltd                                                -   (47,000) 
 Net cash used in investing activities                                    33,638   (62,000) 
                                                                                            
 CASH FLOWS FROM FINANCING ACTIVITIES                                                       
 Proceeds from borrowings                                                 50,000          - 
 Proceeds from issue of shares                                                 -    280,000 
 Net cash provided by financing activities                                50,000    280,000 
                                                                                            
 Net (decrease)/increase in cash held and cash equivalents                 3,569     11,716 
 Cash and cash equivalents at the beginning of the period                 22,846     11,130 
                                                                                            
 Cash and cash equivalents at the end of the period                       26,415     22,846 

The accompanying notes form part of these financial statements.

1.     GENERAL INFORMATION

Tectonic Gold Plc is a company incorporated in the United Kingdom under the
Companies Act 2006. The nature of the Company’s operations and its principal
activities are set out in the Strategic Report and the Directors’ Report on
pages 6 and 8.

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PREPARATION

The consolidated and parent company financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS) as adopted
for use in the European Union (“EU”) applied in accordance with the
provisions of the Companies Act 2006.

The consolidated and parent company financial statements have been prepared
under the historical cost convention, as modified by the revaluation of
financial assets and financial liabilities at fair value through profit or
loss.

IFRS is subject to amendment and interpretation by the International
Accounting Standards Board (“IASB”) and the International Financial
Standards Interpretations Committee (“IFRS IC”) and there is an ongoing
process of review and endorsement by the European Commission. The accounts
have been prepared on the basis of the recognition and measurement principles
of IFRS that were applicable at 30 June 2020.

This financial report includes the consolidated financial statement and notes
of Tectonic Gold Plc (“the Company”) and its controlled entities
(“Consolidated Entity” or “Group”).

The principal accounting policies adopted and applied in the preparation of
the Group’s Financial statements are set out below. These have been
consistently applied to all the years presented unless otherwise stated:

GOING CONCERN

Any consideration of the foreseeable future involves making a judgement, at a
particular point in time, about future events which are inherently uncertain.
The ability of the Group and Company to carry out their planned business
objectives is dependent on the continuing ability to raise adequate financing
from equity investors and/or the achievement of profitable operations.

The adoption of the going concern basis by the Directors is following a review
of the current position of the Company and the forecasts for the next 12
months. The cash and tradable securities together with the funds receivable
and funding support expected from the Queensland State Government are forecast
to enable the Group and Company to meet their obligations and continue to
operate for the foreseeable future. Thus, the directors continue to adopt the
going concern basis in preparing the financial statements. It is beyond the
scope of the Directors to predict any future impact of COVID-19 on any of
these funding sources however and if for any reason it is not possible to sell
any tradeable securities or State Government funding is not secured, this may
impact the ability of the Group and Company to meet their obligations and
continue to operate as envisaged..

CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

New standards, amendments and interpretations adopted by the Group and Company

The group and company have applied the following standards and amendments for
the first time for its annual reporting period commencing 1 July 2019:

IFRS 16, ‘Leases’;

•      Prepayment Features with Negative Compensation – Amendments to
IFRS 9;

•      Long-term Interests in Associates and Joint Ventures –
Amendments to IAS 28;

•      Annual Improvements to IFRS Standards 2015-2017 Cycle;

•      Plan Amendments, Curtailment or Settlement – Amendments to IAS
19;

•      Interpretation 23 ‘Uncertainty over Income Tax Treatments’;
and

Definition of Material – Amendments to IAS 1 and IAS 8.

The adoption of the above has not had a material impact on the Group or
Company.

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (continued)

New standards, amendments and interpretations not yet adopted

A number of new standards and amendments to standards and interpretations are
effective for annual periods beginning after 1 July 2019 and have not been
applied in preparing these consolidated and company financial statements:

•      Annual Improvements to IFRS Standards 2018–2020 (effective 1
January 2022)

•      IFRS 3 (amendments) to clarify the definition of a business
(effective 1 January 2020)

•      IFRS 3 (amendments) updating a reference to the Conceptual
Framework (effective 1 January 2022)

•      IFRS 7, IFRS 9 & IAS 39 (amendments) regarding pre-replacement
issues in the context of the IBOR reform (effective 1 January 2020)

•      IFRS 7, IFRS 9 & IAS 39 (amendments) regarding replacement
issues in the context of the IBOR reform (effective 1 January 2021)

•      IFRS 9 (amendments) resulting from Annual Improvements to IFRS
Standards 2018–2020 (fees in the ‘10 per cent’ test for derecognition of
financial liabilities) (effective 1 January 2022)

•      IAS 1 & IAS 8 (amendments) Definition of Material (effective 1
January 2020)

•      IAS 1 (amendments) regarding the classification of liabilities
(effective 1 January 2023)

•      IAS 1 (amendments) to defer the effective date of the January
2020 amendments (effective 1 January 2023)

•      IAS 16 (amendments) prohibiting a company from deducting from
the cost of property, plant and equipment amounts received from selling items
produced while the company is preparing the asset for its intended use
(effective 1 January 2022)

•      IAS 37 (amendments) regarding the costs to include when
assessing whether a contract is onerous (effective 1 January 2022)

None of these is expected to have a significant effect on the consolidated
financial statements of the Group or Company.

BASIS OF CONSOLIDATION

Where the Group has control over an investee, it is classified as a
subsidiary. The Group controls an investee if all three of the following
elements are present: power over the investee, exposure to variable returns
from the investee, and the ability of the investor to use its power to affect
those variable returns. Control is reassessed whenever facts and circumstances
indicate that there may be a change in any of these elements of control.

The consolidated financial statements comprise the financial statements of the
Company and its subsidiaries as at the end of the reporting period. The
financial statements of the subsidiaries used in the preparation of the
consolidated financial statements are prepared for the same reporting date as
for the Company. Consistent accounting policies are applied to like
transactions and events in similar circumstances. All intra-group balances,
balances and unrealised gains and losses resulting from intra-group
transactions and dividends are eliminated in full.

Subsidiaries are consolidated from the date of acquisition, being the date on
which the Group obtains control, and continue to be consolidated until the
date that such control ceases.

On 25 June 2018, Tectonic Gold (the legal parent) acquired Signature Gold Ltd
(Signature Gold). Although the transaction was not a business combination, the
acquisition has been accounted for as an asset acquisition with reference to
the guidance for reverse acquisition in IFRS 3 Business Combinations and IFRS
2 Share-based Payment.

On 14 February 2020, the Company established Whale Head Minerals Pty Ltd. This
Company has remained dormant since the date of incorporation to the end of the
reporting period.

The financial information for the reporting period includes that of Tectonic
Gold Plc and its controlled entities for the whole reporting period and that
of Whale Head Minerals Pty Ltd for the reporting period since 14 February
2020.

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS

Investments are initially measured at fair value plus directly attributable
incidental acquisition costs.  Subsequently, they are measured at fair value
in accordance with IFRS 9. This is either the bid price or the last traded
price, depending on the convention of the exchange on which the investment is
quoted.

Investments are recognised as financial assets at fair value through the
profit or loss. Gains and losses on measurement are recognised in other
comprehensive income except for impairment losses and foreign exchange gains
and losses on monetary items denominated in a foreign currency, until the
assets are derecognised, at which time the cumulative gains and losses
previously recognised in other comprehensive income are recognised in the
income statement.

The Company assesses at each year-end date whether there is any objective
evidence that a financial asset or group of financial assets classified as
available-for-sale has been impaired. An impairment loss is recognised if
there is objective evidence that an event or events since initial recognition
of the asset have adversely affected the amount or timing of future cash flows
from the asset. A significant or prolonged decline in the fair value of a
security below its cost shall be considered in determining whether the asset
is impaired.

INVESTMENTS

In the Company’s separate financial statements, investments in subsidiaries
are accounted for at cost less impairment losses.

FOREIGN CURRENCIES

The Group and Company’s financial statements are presented in the currency
of the primary economic environment in which it operates (its functional
currency).  For the purpose of these financial statements, the results and
financial position are expressed in Pounds Sterling, which is the presentation
currency of the Group and Company.

Each entity in the Group determines its own functional currency and items
included in the financial statements of each entity are measured using that
functional currency.

Exchange differences arising on the settlement of monetary items, and on the
retranslation of monetary items, are included in the income statement. 
Exchange differences arising on the retranslation of non-monetary items
carried at fair value are included in profit or loss for the period, except
for differences arising on the retranslation of non-monetary items in respect
of which gains and losses are recognised directly in equity.  For such
non-monetary items, any exchange component of that gain or loss is also
recognised directly in equity.

When a decline in the fair value of a financial asset classified as
available-for-sale has been previously recognised in other comprehensive
income and there is objective evidence that the asset is impaired, the
cumulative loss is removed from other comprehensive income and recognised in
the income statement. The loss is measured as the difference between the cost
of the financial asset and its current fair value less any previous
impairment.

For the purpose of presenting the Group and Company financial statements, the
assets and liabilities of any of the Group and Company’s operations that are
overseas are translated at exchange rates prevailing on the year-end date. 
Income and expense items are translated at the average exchange rates for the
period.

Any translation differences on consolidation are recognised in Other
Comprehensive Income.

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

TAXATION

The tax expense represents the sum of the tax currently payable and deferred
tax.

The tax currently payable is based on taxable profit for the year.  Taxable
profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. 
The Company’s liability for current tax is calculated using tax rates that
have been enacted or substantively enacted by the year end date.

The research and development tax incentive claim is recognised as income tax
revenue in the period in which it is received.

Deferred tax is the tax expected to be payable or recoverable on temporary
differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation
of taxable profit, and is accounted for using the balance sheet liability
method.  Deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent
that it is probable that taxable

profits will be available against which deductible temporary differences can
be utilised.  Such assets and liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill or from the initial
recognition (other than in a business combination) of other assets and
liabilities in a transaction that affects neither the tax profit nor the
accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the Company is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax
liabilities and where they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and
liabilities on a net basis.

EXPLORATION AND EVALUATION EXPENDITURE

Exploration expenditure incurred is accumulated in respect of each
identifiable area of interest, net of any related grant income received. These
costs are only carried forward to the extent that they are expected to be
recovered through the successful development or sale of the area or where
activities in the area have not yet reached a stage which permits reasonable
assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full
against profit or loss in the year in which the decision to abandon the area
is made. When production commences, the accumulated costs for the relevant
area of interest are amortised over the life of the area according to the rate
of depletion of the economically recoverable reserves. A regular review is
undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to the area of interest.

Exploration and evaluation assets are assessed for impairment annually or when
facts and circumstances suggest that the carrying amount of an asset may
exceed its recoverable amount in accordance with IFRS 6.

PROPERTY, PLANT AND EQUIPMENT

Items of property, plant and equipment are recorded at cost and depreciated as
outlined below:

Depreciation of Property, Plant and Equipment

Depreciation is calculated on a straight-line basis to write off the net cost
of each item of property, plant and equipment over its expected useful life
for the entity. Estimates of remaining useful lives are made on a regular
basis for all assets with annual reassessments for major items. The expected
useful lives are as follows:

Plant and equipment     5 years

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

IMPAIRMENT OF PROPERTY, PLANT & EQUIPMENT

At each financial year end date, the Company reviews the carrying amounts of
its tangible assets to determine whether there is any indication that those
assets have suffered an impairment loss.  If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss, if any.  Where the asset does not generate cash flows
that are independent from other assets, the Company estimates the recoverable
amount of the cash-generating unit to which the asset belongs. 

If the recoverable amount of an asset or cash-generating unit is estimated to
be less than its carrying amount, the carrying amount of the asset or
cash-generating unit is reduced to its recoverable amount and the impairment
loss is recognised as an expense immediately.

When an impairment loss subsequently reverses, the carrying amount of the
asset or cash-generating unit is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss
been recognised for the asset or cash-generating unit in prior years.  A
reversal of an impairment loss is recognised as income immediately, unless the
relevant asset is carried at a revalued amount, in which case the reversal of
the impairment loss is treated as a revaluation increase.

NON-CURRENT ASSETS (OR DISPOSAL GROUPS) HELD-FOR-SALE AND DISCONTINUED
OPERATIONS

Non-current assets (or disposal groups) are classified as assets held for sale
when their carrying amount is to be recovered principally through a sale
transaction and a sale is considered highly probable. They are stated at the
lower of carrying amount and fair value less costs to sell. A discontinued
operation is a component of the Group that is classified as held for sale and
that represents a separate line of business or geographical area of
operations. The results of discontinued operations are presented separately in
the Consolidated Income Statement.

TRADE RECEIVABLES, LOANS AND OTHER RECEIVABLES

Trade receivables, loans and other receivables that have fixed or determinable
payments that are not quoted in an active market are classified under ‘loans
and receivables. Loans and receivables are measured at amortised cost using
the effective interest method, less any impairment. Interest income is
recognised by applying the effective interest rate, except for short term
receivables when the recognition of interest would be immaterial.

Other receivables, that do not carry any interest, are measured at their
nominal value as reduced by any appropriate allowances for irrecoverable
amounts.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash on hand and other short-term bank
deposits.

FINANCIAL LIABILITIES

Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. Financial liabilities
are classified as either financial liabilities ‘at FVTPL’ or ‘other
financial liabilities’.

All financial liabilities are recognised initially at fair value and, in the
case of loans and borrowings and payables, net of directly attributable
transaction costs. Subsequent measurement is at amortised cost using the
effective interest method. The Group’s financial liabilities include trade
and other payables.

A financial liability is held for trading if it meets one of the following
conditions:

•      It is incurred principally for the purpose of repurchasing it in
the near term

•      On initial recognition it is part of a portfolio of identified
financial instruments that are managed together and for which there is
evidence of a recent actual pattern of short-term profit-taking, or

•      It is a derivative (except for a derivative that is a financial
guarantee contract or a designated and effective hedging instrument).

There were no financial liabilities ‘at FVTPL’ during the current, or
preceding, period.

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

OTHER FINANCIAL LIABILTIES AND SHORT-TERM BORROWINGS

Interest-bearing loans and overdrafts are recorded at the proceeds received,
net of direct issue costs.  Finance charges are accounted for on an accruals
basis in profit or loss using the effective interest rate method and are added
to the carrying amount of the instrument to the extent that they are not
settled in the period in which they arise. Other short-term borrowings being
intercompany loans and unsecured convertible loan notes issued in the year are
recognised at amortised cost net of any financing or arrangement fees.

TRADE PAYABLES

Trade payables are initially measured at fair value and subsequently measured
at amortised cost using the effective interest method, less provision for
impairment.

SHARE-BASED PAYMENTS

The Company has applied the requirements of IFRS 2 Share-based payments. 

The Company operates an equity-settled share-based payment scheme under which
share options are issued to certain employees.  Equity-settled share-based
payments are measured at fair value (excluding the effect of non-market-based
vesting conditions) at the date of grant.  The fair value determined at the
grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Company’s estimate
of shares that will eventually vest and adjusted for the effect of
non-market-based vesting conditions.

Fair value is measured by use of the Black Scholes model.  The expected life
used in the model has been adjusted, based on management’s best estimate,
for the effects of non-transferability, exercise restrictions, and behavioural
considerations.

EQUITY INSTRUMENTS INCLUDING SHARE CAPITAL

Equity instruments issued by the Company are recorded at the proceeds
received, net of incremental costs attributable to the issue of new shares.

An equity instrument is any contract that evidences a residual interest in the
assets of a company after deducting all of its liabilities. Equity instruments
issued by the Company are recorded at the proceeds received net of direct
issue costs.

Share capital represents the amount subscribed for shares at nominal value.

The share premium account represents premiums received on the initial issuing
of the share capital. Any transaction costs associated with the issuing of
shares are deducted from share premium, net of any related income tax
benefits. Any bonus issues are also deducted from share premium.

The reverse takeover reserve represents the adjustment needed to reflect the
reverse takeover of Signature Gold in the previous year.

The foreign currency translation reserve is used to record exchange
differences arising from the translation of the financial statements of
foreign subsidiaries.

The warrant reserve represents the fair value of warrants granted to employees
and suppliers for services provided to the Group. The fair value of warrants
is expensed over the vesting period or during the period in which the services
are received.

Accumulated losses include all current and prior period results as disclosed
in the statement of comprehensive income.

3.     CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATIONS

In the application of the Company’s accounting policies, which are described
in note 2, the Directors are required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions
are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis.
Revisions to accounting estimates are recognised in the period. Judgements and
estimates that may affect future periods are as follows:

SHARE BASED PAYMENTS

The calculation of the fair value of equity-settled share-based awards and the
resulting charge to the statement of comprehensive income requires assumptions
to be made regarding future events and market conditions. These assumptions
include the future volatility of the Company’s share price. These
assumptions are then applied to a recognised valuation model in order to
calculate the fair value of the awards.

TREATMENT OF EXPLORATION AND EVALUATION COSTS

Exploration expenditure incurred is accumulated in respect of each
identifiable area of interest, net of any related grant income received. These
costs are only carried forward to the extent that they are expected to be
recovered through the successful development or sale of the area or where
activities in the area have not yet reached a stage which permits reasonable
assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full
against profit in the year in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of
interest are amortised over the life of the area according to the rate of
depletion of the economically recoverable reserves. A regular review is
undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to the area of interest.

The value of the Group’s exploration and evaluation expenditure will be
dependent upon the success of the Group in discovering economic and
recoverable mineral resources. It is also dependent on the Group successfully
renewing its licences.

The future revenue flows relating to these assets is uncertain and will also
be affected by competition, relative exchange rates and potential new
legislation and related environmental requirements.

4.     SEGMENTAL INFORMATION

The Chief Operating Decision Maker of the Group is the Board of Directors. The
Group operates in one industry segment being mineral exploration. Information
is therefore shown for geographical segments.

 2020                                                                           AUSTRALIA  SOUTH AFRICA  UNALLOCATED    TOTAL    
                                                                                   GBP          GBP          GBP         GBP     
 Revenue                                                                                                                         
 Interest                                                                                -             -        5,180      5,180 
 Net fair value gain on financial assets at fair value through profit and loss           -             -       77,750     77,750 
 Gain on sale of investment                                                              -             -       46,722     46,722 
 Gain on sale of Deep Blue Minerals                                                      -             -       76,171     76,171 
 Other fees                                                                              -             -      166,793    166,793 
 Total segment revenue                                                                   -             -      372,616    372,616 
 Segment net profit/(loss) before tax and other items                             (59,924)             -      269,024    209,100 
 Depreciation and amortisation                                                     (1,515)             -            -    (1,515) 
 Net profit/(loss) before income tax                                              (61,439)             -      269,024    207,585 
 Income tax benefit                                                                149,097             -            -    149,097 
 Net profit/(loss) after income tax                                                 87,658             -      269,024    356,682 
 Segment assets at 30 June 2020                                                  3,081,631             -      255,923  3,337,554 
 Segment liabilities at 30 June 2020                                               402,794             -      124,888    527,682 

        All additions to intangible assets occurred in the Australian
reporting segment.

 2019                                           AUSTRALIA  SOUTH AFRICA  UNALLOCATED     TOTAL     
                                                   GBP          GBP          GBP          GBP      
 Revenue                                                                                           
 Interest                                                -            59            -           59 
 Consulting fees                                    24,471             -            -       24,471 
 Other fees                                              -         7,332            -        7,332 
 Total segment revenue                              24,471         7,391            -       31.862 
 Segment net (loss) before tax and other items   (123,431)      (31,721)    (290,662)    (445,814) 
 Impairment of exploration costs                 (703,936)             -            -    (703,936) 
 Depreciation and amortisation                     (1,338)             -            -      (1,338) 
 Net (loss) before income tax                    (828,705)      (31,721)    (290,662)  (1,151,088) 
 Income tax benefit                                326,214             -            -      326,214 
 Net (loss) after income tax                     (502,491)      (31,721)    (290,662)    (824,874) 
 Segment assets at 30 June 2019                  2,998,503        47,060       68,069    3,113,632 
 Segment liabilities at 30 June 2019               424,802        66,214      112,907      603,923 

        All additions to intangible assets occurred in the Australian
reporting segment.

5.     REVENUE

                                                   CONSOLIDATED    
                                                     2020     2019 
                                                      GBP      GBP 
 Consulting services                                    -   24,471 
 Interest income                                    5,180       59 
 Gain on sale of royalty                          146,657        - 
 Gain on sale of investment                        46,722        - 
 Gain on sale of Deep Blue Minerals Plc            76,171        - 
 Other fees                                             -    7,332 
 Option fee                                        20,136        - 
 Total revenue from continuing operations         294,866   31,862 

6.     OPERATING LOSS

                                                         CONSOLIDATED     
                                                          2020       2019 
                                                           GBP        GBP 
 Operating (loss) is stated after charging:                               
 Staff costs as per Note 8 below                      (34,155)   (89,777) 
 Impairment of exploration costs                             -  (703,936) 
 Fair value of warrants issued and vested                    -   (68,900) 
 Depreciation of property plant and equipment          (1,515)    (1,338) 
 Net Foreign exchange gain                             (7,093)   (28,549) 

7.     AUDITORS’ REMUNERATION  

                                                                                                                                                                CONSOLIDATED    
                                                                                                                                                                  2020     2019 
                                                                                                                                                                   GBP      GBP 
 The analysis of auditors’ remuneration is as follows:                                                                                                                          
 Fees paid or payable to Signature Gold’s auditors in that geographical location for the audit of the Company’s annual accounts and other services              10,714   30,699 
 Fees payable to the Group’s auditor for the audit of the Company’ annual accounts.                                                                             30,500   25,500 
 Fees paid to the Company’s former auditor for the audit of the Company annual accounts, taxation, due diligence and other services                              5,329   11,799 
                                                                                                                                                                46,543   67,998 

8.     STAFF COSTS

                                                                                                                      CONSOLIDATED     
                                                                                                                        2020      2019 
                                                                                                                         GBP       GBP 
 The average monthly number of employees (including executive directors) for the continuing operations was:                            
 Company total staff                                                                                                       2         2 
 Wages and salaries                                                                                                   70,922   153,751 
 Provision for annual leave                                                                                            3,295       329 
 Provision for long service leave                                                                                   (10,940)     1,419 
 Superannuation                                                                                                        4,168    14,124 
 Staff training costs and other costs                                                                                    748     4,888 
                                                                                                                      68,193   174,511 
 Less: staff costs allocated to exploration projects costs                                                          (34,038)  (84,734) 
                                                                                                                      34,155    89,777 

   

                                                                                                                       COMPANY     
                                                                                                                      2020    2019 
                                                                                                                       GBP     GBP 
 The average monthly number of employees (including executive directors) for the continuing operations was:                        
 Company total staff                                                                                                     2       2 
 Wages and salaries                                                                                                 63,333  63,333 
 Superannuation                                                                                                      6,772   6,772 
                                                                                                                    70,105  70,105 

During the reporting period, consulting fees totalling GBP 14,428 was paid to
Zeg Choudhry, former Director of Tectonic Gold Plc. There were no other fees
paid to directors during the reporting period nor in the comparative reporting
period.

9.     TAXATION

 There is no UK tax charge/credit during the reporting periods. Reconciliation of tax charge:                                                                                
                                                                                CONSOLIDATED                                                                                 
                                                                                                                                                             2020       2019 
                                                                                                                                                              GBP        GBP 
 Numerical reconciliation of income tax expense to prima facie tax payable                                                                                                   
 Tax at the Australian corporation tax rate of 27.5% (2019: 30%)                                                                                         (22,093)  (247,462) 
 Effects of:                                                                                                                                                                 
 - S.40-800 ‘Black hole’ deductions                                                                                                                      (21,071)          - 
 - Tax effect of tax losses not recognized as benefits including tax effect of differences in the standard rate of tax in different jurisdictions          43,164    247,622 
 - Research and Development Tax Incentive claim                                                                                                         (149,097)    326,214 
 Tax benefit for the period                                                                                                                               149,097    326,214 

No deferred tax asset has been recognised in respect of the losses. At the end
of the reporting period the Group had unused tax losses of £2,235,596 (2019:
£ 2,059,715).

Where it is anticipated that future taxable profits will be available against
which these losses will be utilised, a deferred tax asset is recognised. The
total taxation charge in future periods will be affected by any changes to the
corporation tax rates in force in the countries in which the Company operates

10.   EARNINGS PER SHARE

 The basic earnings per share is based on the profit for the year divided by the weighted average number of shares in issue during the reporting period. The weighted average number of ordinary shares for the reporting period assumes that all shares have been included in the computation based on the weighted average number of days since issue. 
                                                                                                                        2020         2019 
                                                                                                                         GBP          GBP 
 Profit/ (loss) for the year attributable to owners of the Company                                                   282,748    (824,874) 
 Weighted average number of ordinary shares in issue for basic earnings                                          697,562,746  688,357,267 
 Weighted average number of ordinary shares in issue for fully diluted earnings                                  710,562,746  688,357,267 
 Gain/ (loss) per share (pence per share)                                                                                                 
 Basic                                                                                                                  0.04       (0.12) 
 Diluted                                                                                                                0.04       (0.12) 

11.   CASH AND CASH EQUIVALENTS

                              CONSOLIDATED        COMPANY     
                                2020     2019    2020    2019 
                                 GBP      GBP     GBP     GBP 
 Cash and cash equivalents    52,734   34,875  26,415  22,846 

  The Directors consider the carrying amount of cash and cash equivalents
approximates to their fair value.

12.   TRADE AND OTHER RECEIVABLES

                              CONSOLIDATED           COMPANY        
                                2020     2019       2020       2019 
                                 GBP      GBP    GBP            GBP 
 Current                                                            
 Other debtors                     -    7,913          -          - 
 GST receivable                1,865        -          -          - 
                               1,865    7,913          -          - 
 Non-current                                                        
 Loan to controlled entity         -        -  1,344,409  1,341.710 
                                   -        -  1,344,409  1,341,710 

No receivables were past due or provided for at the year-end or at the
previous year end. The Directors consider the carrying amount of trade and
other receivables approximates to their fair value.

13.   NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

On 17 June 2020, the Company sold 90% of the investment in Deep Blue Minerals
(Pty) Ltd to Align Capital via a write- off of the loan from Align of
GBP100,000.  

The results of the discontinued operations which have been included in the
consolidated income statement, were as follows:

                                                                                                            2020      2019    
                                                                                                            GBP        GBP    
 Other income                                                                                               130,953     7,391 
 Expenses                                                                                                 (202,672)  (39,112) 
 (Loss) before tax of discontinued operations                                                              (71,719)  (31,721) 
 Tax                                                                                                              -         - 
 (Loss) of discontinued operations attributable to the owners of the Company                               (71,719)  (31,721) 

During the year, Deep Blue Minerals (Pty) Ltd contributed to the Group’s
cash flows as follows:

                                           2020      2019    
                                            GBP       GBP    
 Operating cash flows                     (46,936)  (44,057) 
 Investing cash flows                           56         - 
 Financing cash flows                       36,439    54,418 
 Total cash flows                         (10,441)    10,361 

14.   PLANT AND EQUIPMENT

                                            CONSOLIDATED      
                                        GBP  2020  GBP  2019  
 Plant and equipment                                          
 - At cost                                  16,453     16,303 
 - Less accumulated depreciation          (11,378)    (9,700) 
                                             5,075      6,603 

   

                                                       PLANT AND EQUIPMENT  GBP  2020  PLANT AND EQUIPMENT  GBP  2019  
 Carrying amount at the beginning of the period                                  6,603                           2,152 
 Additions                                                                           -                           6,912 
 Disposals                                                                           -                         (1,091) 
 Depreciation                                                                  (1,558)                         (1,338) 
 Foreign exchange                                                                   30                            (32) 
 Carrying amount at the end of the period                                        5,075                           6,603 

15.   EXPLORATION AND EVALUATION EXPENDITURE

                                                                              CONSOLIDATED          
                                                                                    2020       2019 
                                                                                     GBP        GBP 
 Non-producing properties                                                                           
 Balance at the beginning of the period                                        2,663,707  2,830,470 
 Exploration and evaluation expenditure                                           36,402    587,111 
 Impairment of exploration and evaluation expenditure                                  -  (703,936) 
 Foreign exchange                                                                (4,428)   (49,938) 
 Balance at the end of the reporting period                                    2,695,681  2,663,707 

The ultimate recoupment of balances carried forward in relation to areas of
interest still in the exploration or valuation phase is dependent on
successful development, and commercial exploitation, or alternatively sale of
the respective areas.

16.   FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS

                                        CONSOLIDATED        COMPANY      
                                          2020     2019     2020    2019 
                                           GBP      GBP      GBP     GBP 
 Investment in VOX Royalty Corp Plc    224,407        -  224,407       - 
 Investment in Tirupati Graphite Plc         -   40,122        -  40,122 
                                       224,407   40,122  224,407  40,122 

The investment in Tirupati Graphite Plc ("TRM") relates to the joint venture
holding company of a joint venture agreement between Tectonic Gold and
Tirupati Carbons and Chemicals Pvt. Ltd ("Tirupati"). US$50,000 was invested
by way of a subscription for 1.48% of the enlarged issued share capital of
TRM. TRM is the 98% owner of Tirupati Madagascar Ventures SARL ("TMV"), the
owner of the Vatomaina licence, Exploitation Permit (PE) No. 38321.

On the 2nd of September 2019, the Company announced the sales of its 2.5%
royalty interest in Bass Metals’ Graphmada graphite mine to Silverstream
SEZC for a consideration of up to A$550,000 in cash and convertible notes. The
Company received a CAD$250,000 one year 5% unsecured convertible note maturing
on 27 August 2020 with the balance of the consideration due in cash subject to
performance milestones.

Convertible Note of CAD$250,000 was settled on 25 May 2020 with the issue of
98,039 shares in VOX Royalty Corp (VOX) (formerly Silverstream SEZC) at a
price of CAD$3.00 per share less 15% discount which amounts to CAD 2.55 per
share. The closing price as at 30 June 2020 was CAD $3.85.

Measurement of fair value of financial instruments

The management team of Tectonic Gold perform valuations of financial items for
financial reporting purposes, with everything being a Level 1 listed
investment. Valuation techniques are selected based on the characteristics of
each instrument, with the overall objective of maximising the use of
market-based information.

17.   CONTROLLED ENTITIES

Details of controlled entities are as follows:

 PARENT ENTITY                                                                                                                            COUNTRY OF INCORPORATION                                                                                                                
 Tectonic Gold Plc  25 Bilton Road, Rugby, England, CV22 7AG                                                                                   United Kingdom                                                                                                                     
 CONTROLLED ENTITIES                                                                                      PRINCIPAL ACTIVITIES            COUNTRY OF INCORPORATION    PERCENTAGE OF EQUITY HELD BY THE COMPANY    INVESTMENT HELD BY THE COMPANY  INVESTMENT HELD BY THE COMPANY  
                                                                                                                                                                            2020 %                2019  %                    2020  GBP                       2019  GBP            
 Signature Gold Pty Ltd 13/20 Bridge Street, Sydney NSW, Australia 2001                                   Mineral exploration                     Australia                  100                    100                      3,605,254                       3,605,254            
 Deep Blue Minerals Pty Ltd 6 Reier Avenue, Alexander Bay, Northern Cape Republic of South Africa, 8290   Mineral Exploration                   South Africa                  10                    100                         0.5                              5                
 Whale Head Minerals Pty Ltd 6 Reier Avenue, Alexander Bay, Northern Cape Republic of South Africa, 8290  Mineral Exploration                   South Africa                 100                     -                           -                               -                

(i)   Signature Gold Limited was converted from a Public Limited Company to
a Private Limited Company on 3 June 2019.

(ii)  Deep Blue Minerals Pty Ltd was incorporated on 17 April 2019 and 90% of
the Company’s interest in Deep Blue Minerals Pty Ltd was sold on 17 June
2020.

(iii) Whale Head Minerals Pty Ltd was incorporated on 14 February 2020.

18.   OTHER ASSETS

                      CONSOLIDATED       COMPANY    
                        2020     2019   2020   2019 
                         GBP      GBP    GBP    GBP 
 Prepayments ((i))   349,341  346,151      -      - 
 Other prepayments     5,100    6,440  5,100  5,100 
 Security deposits     3,351    7,821      -      - 
                     357,792  360,412  5,100  5,100 

(i) In 2018 the Company paid Titeline Drilling Pty Ltd ACN 096 640 201
(Titeline) for future drilling services in accordance with the heads of
agreement dated 28 March 2018 between Titeline, Signature and StratMin.

(ii)  Titeline has been engaged to complete 10,000 meters of diamond drilling
to produce core samples for analysis, assay and metallogenic studies from the
Company’s Biloela Project site. A review to be completed after 2,500 metres
of drilling has been completed and the completion program for the remaining
7,500 metres to be mutually agreed.

As at 30 June 2018, the prepayment of GBP 633,825 (A$1,125,000) to Titeline
was comprised of:

•      GBP 126,765 (A$225,000 excluding GST) paid in cash; and

•      pre-paid technical services amounting to GBP 507,060 ($A90,000)
settled with the issue of 5,544,484 fully paid ordinary shares issued in the
Company at an issue price of A$0.162 per share.

As at 30 June 2020, the balance of the prepayment to Titeline is GBP 349,341
(A$625,386) (2019: GBP346,151 A$625,386).

19.   TRADE AND OTHER PAYABLES

                     CONSOLIDATED        COMPANY     
                       2020     2019    2020    2019 
                        GBP      GBP     GBP     GBP 
 Current                                             
 Trade payables     233,667  195,024  18,870  24,074 
 Other payables       3,962   11,104       -       - 
 Accrued expenses    47,083   69,552  49,333  38,833 
                    284,712  275,680  68,203  62,907 
 Non-Current                                         
 Other payables      16,060   15,913       -       - 
                     16,060   15,913       -       - 

The Directors consider the carrying amount of trade payables approximates to
their fair value.

20.   BORROWINGS

                                                            CONSOLIDATED        COMPANY     
                                                              2020     2019    2020    2019 
                                                               GBP      GBP     GBP     GBP 
 Current                                                                                    
 Loan from Shareholder ((iii))                                   -   50,000       -  50,000 
                                                                 -   50,000       -  50,000 
 Non-Current                                                                                
 Loan payable to director related entities ((i))            70,650   81,961  56,685       - 
 Loan payable to Consolidated Minerals Pte Ltd ((i)(ii))   156,258  154,832       -       - 
                                                           226,908  236,793  56,685       - 

(i)    The loans outstanding at the end of the reporting period and
comparative periods do not accrue interest and are not due to be repaid on or
before 12 months after the end of each reporting period.

(ii)    Signature Gold and shareholder Consolidated Minerals Pte Ltd, a
resources and infrastructure investment fund based in Singapore, are
evaluating international IRGS assets as cooperative opportunities. The parties
expect to settle the loan as part of an agreement on one or more of these
projects either in equity via an acquisition or merger or as a joint venture
interest via a farm in. This is not expected to complete prior to 30 June
2021.

(iii)   During the reporting period the Company borrowed an additional GBP
50,000 and as at 17 June 2020 the Company owed GBP 100,000 to Align Research
Limited. On 16 December 2019 the Company entered into an option agreement with
the owner of Align Research Limited to acquire a 90% interest in Tectonic
South Africa Pty Ltd (renamed Deep Blue Minerals Pty Ltd) for GBP 100,000.
Consideration is to be met by offsetting the GBP 100,000 loan from Align
Research Limited to Tectonic Gold Plc. This loan was settled on 17 June 2020.

The Directors consider the carrying amount of short-term borrowings
approximates to their fair value.

21.   EMPLOYEE BENEFITS

                       CONSOLIDATED      COMPANY   
                         2020     2019  2020  2019 
                          GBP      GBP   GBP   GBP 
 Current                                           
 Annual Leave               -   14,174     -     - 
 Non-Current                                       
 Long Service Leave         -   11,363     -     - 

22.   ISSUED CAPITAL

                                                                                                         Jun-20  GBP  
 697,562,746 fully paid 0.001p ordinary shares (2019: 697,562,746 fully paid ordinary shares)               6,100,615 

Fully Paid Ordinary Shares

Reconciliation of share issued during the reporting period is set out below:

                                                 2020  ISSUE PRICE        2020         2019  ISSUE PRICE       2019 
                                               NUMBER          GBP           £       NUMBER          GBP          £ 
 Balance at the beginning of the period   697,562,746                6,100,615  687,562,746               6,099,615 
 01 June 2019: Issue of shares                                                   10,000,000       0.0001      1,000 
 Balance at the end of the period         697,562,746    6,100,615  16,124,161  697,562,746               6,100,615 

Each ordinary share carries the right to be one vote at shareholders’
meetings and is entitled to participate in any dividends or other
distributions of the Company.

23.  
   RESERVES                                                                                                                                    
                      

                                          CONSOLIDATED       COMPANY   
                                            2020      2019  2020  2019 
                                             GBP       GBP   GBP   GBP 
 Foreign Currency Translation Reserve                                  
 Opening balance                        (92,681)  (58,251)     -     - 
 Foreign currency translation             17,416  (34,430)     -     - 
 Closing balance                        (75,265)  (92,681)     -     - 

   

 Warrant Reserve                                  
 Opening balance   95,098  95,098  95,098  95,098 
 Additions              -       -       -       - 
 Closing balance   95,098  95,098  95,098  95,098 

   

                                                             
 Reverse Takeover Reserve                                    
 Opening balance            (57,976,182)  (57,976,182)  -  - 
 Additions                             -             -  -  - 
 Closing balance            (57,976,182)  (57,976,182)  -  - 

The Foreign Currency Translation Reserve is used to record exchange
differences arising from the translation of the financial statements of
foreign subsidiaries.

The Option Reserve represents the fair value of options granted to employees
and suppliers for services provided to the Group. The fair value of options is
expensed over the vesting period or during the period in which the services
are received.

The Reverse Takeover Reserve represents the adjustment needed to reflect the
reverse takeover of Signature Gold which was completed on 25 June 2018.

24.   CASH FLOW INFORMATION

For the purpose of presentation in the statement of cash flows, cash and cash
equivalents includes cash on hand, deposits held at call with financial
institutions, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in
value.

Cash and cash equivalents at the end of the financial year as shown in the
statement of cash flows is reconciled to the related items in the statement of
financial position as follows:

                                                                                                                              CONSOLIDATED             COMPANY        
                                                                                                                                2020       2019       2020       2019 
                                                                                                                                 GBP        GBP        GBP        GBP 
 Profit/(Loss) for the reporting period before taxation                                                                      282,747  (824,874)    178,567  (292,465) 
 Add/(deduct): Non-cash items                                                                                                                                         
 Depreciation and amortisation                                                                                                 1,515      1,338          -          - 
 Gain on sale of Deep Blue Minerals Plc                                                                                     (76,171)          -   (99,996)          - 
 Impairment of exploration and evaluation expenditure                                                                              -    703,936          -          - 
 Impairment of loan to Tectonic Gold S.A                                                                                           -          -    117,606          - 
 Royalty settled in equity                                                                                                 (224,407)          -  (224,407)          - 
 Share based payment                                                                                                               -     30,000          -     30,000 
 Foreign exchange                                                                                                            (8,368)     24,296   (10,414)     23,654 
 Gain on sale of Tirupati                                                                                                   (46,722)          -   (46,722)          - 
 Non-cash profit on disposal of property, plant and equipment                                                                      -      1,091          -          - 
 Change in assets and liabilities net of the effect of acquisitions and disposals associated with business combinations:                                              
 Increase in trade and other receivables                                                                                       6,048     71,879          -         77 
 Increase/(Decrease) in other assets                                                                                           2,260      (399)          -      5,354 
 (Decrease)/Increase in trade creditors and accruals                                                                         (5,142)  (206,010)      5,297     27,096 
 Increase in provisions                                                                                                            -      1,325          -          - 
 Net cash used in operating activities                                                                                      (67,880)  (197,418)   (80,069)  (206,284) 

          Non-cash financing and investing activities

  There were no non-cash financing and investing activities during the year.

25.   FINANCIAL INSTRUMENTS

   Financial assets by category

The IFRS 9 categories of financial assets included in the Statement of
financial position and the headings in which they are included are as follows:

                                                              CONSOLIDATED          COMPANY    
                                                             2020    2019         2020    2019 
                                                              GBP     GBP          GBP     GBP 
 Financial assets at fair value through profit and loss   224,407  40,122      224,407  40,122 
 Financial assets at amortised cost:                                                           
 Cash and cash equivalents                                 52,734  34,875       26,415  22,846 
 Trade and other receivables                                1,865   7,913            -       - 
                                                          279,006  82,910      250,822  62,968 
                                                                                               

   Financial liabilities by category

The IFRS 9 categories of financial liability included in the Statement of
financial position and the headings in which they are included are as follows:

                                             CONSOLIDATED             COMPANY           
                                               2020           2019    2020     2019     
                                                GBP            GBP     GBP      GBP     
 Financial liabilities at amortised cost:                                               
 Trade and other payables                   300,772        291,593  68,203   62,907     
 Borrowings                                 226,908        286,793       -   50,000     
                                            527,680        578,386  68,203  112,907     
                                                                                        

   Capital risk management

The Group manages its capital to ensure that it will be able to continue as a
going concern while maximising the return to stakeholders through the
optimisation of the debt and equity balance. The capital structure of the
Group consists of debt, (previously includes the borrowings) cash and cash
equivalents and equity attributable to equity holders of the Company,
comprising issued capital, reserves and accumulated losses, all as disclosed
in the Statement of Financial Position.

Financial risk management objectives

The Group is exposed to a variety of financial risks which result from both
its operating and investing activities.  The Group’s risk management is
coordinated by the board of directors and focuses on actively securing the
Group’s short to medium term cash flows by minimising the exposure to
financial markets.

The main risks the Group is exposed to through its financial instruments are
credit risk, liquidity risk and market price risk.

Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies. Hence,
exposures to exchange rate fluctuations arise. Since 25 June 2018. the
Company’s major activity is now investment in Australia through its
subsidiary Signature Gold, bringing exposure to the exchange rate fluctuations
of GBP/£ Sterling with both Australian Dollars.

Exchange rate exposures are managed within approved policy parameters. The
Company does not enter into forward exchange contracts to mitigate the
exposure to foreign currency risk as amounts paid and received in specific
currencies are expected to largely offset one another and the currencies most
widely traded are relatively stable.

26.   FINANCIAL INSTRUMENTS (continued)

The Directors consider the balances most susceptible to foreign currency
movements to be the net assets of Signature Gold for the Group and the
Investment Available for Sale for the Company.

 CONSOLIDATED                                                2020  AUD  2019  AUD  
 Net Assets of Signature Gold                                2,388,881  2,252,911  
                                                                                   
 COMPANY                                                     GBP  2020  GBP  2019  
 Financial assets at fair value through profit and loss       224,407     40,122   

The following table illustrates the sensitivity of the value of the foreign
currency denominated assets in regard to the change in AUD exchange rates.

It assumes a +/- 15% change in the AUD/GBP exchange rate for the year ended 30
June 2020 (2019:15%).

Impact of exchange rate fluctuations

                                         AUD IMPACT  2020  GBP  AUD IMPACT  2019  GBP 
 Average movement in exchange rate                         15%                    15% 
 Change in equity                                                                     
 Increase in GBP value                                 200,164                187,048 
 Decrease in GBP value                                 200,164                187,048 
 Result for the period                                                                
 Increase in GBP value                                  10,868                 75,374 
 Decrease in GBP value                                  10,868                 75,374 

Exposure to foreign exchange rates varies during the year depending on the
volume and nature of foreign transactions. Nonetheless, the analysis above is
considered to be representative of the Group’s exposure to currency risk.

Interest rate risk management

The Group’s exposure to interest rates on financial assets and financial
liabilities is detailed in the liquidity risk management section of this note.

There are no long-term loans or short-term loans that carry any interest and
thus sensitivity analyses have not been provided on the exposure to interest
rates for both derivatives and non-derivative instruments during the year.

There would have been no effect on amounts recognised directly in equity.

Credit risk management

The Group's financial instruments, which are subject to credit risk, are
considered to be cash and cash equivalents and trade and other receivables,
and its exposure to credit risk is not material. The credit risk for cash and
cash equivalents is considered negligible since the counterparties are
reputable banks.

The Group’s maximum exposure to credit risk is £54,599 (2019: £82,910)
comprising other receivables, investments and cash.

Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board of
Directors, which monitors the Company’s short, medium and long-term funding
and liquidity management requirements on an appropriate basis. The Company
manages liquidity risk by maintaining adequate reserves, banking facilities
and reserve borrowing facilities. The Company’s liquidity risk arises in
supporting the trading operations in the subsidiaries, which hopefully will
start to generate profits and positive cash-flows in the short term. However,
as referred to in Note 3 the Company is currently exposed to significant
liquidity risk and needs to obtain external funding to support the Company
going forwards.

27.   RELATED PARTY DISCLOSURES

Company                                                                                        

The remuneration of the Directors, who are the key management personnel of the
Group, is set out in Note 8.

Loans from the related parties are disclosed in Note 20.

During the reporting period, consulting fees totalling GBP 14,428 was paid to
Zeg Choudhry, former Director of Tectonic Gold Plc.

Group

During the reporting period,

(i)    On 17 June 2020, the balance owing to Brett Boynton from Deep Blue
Minerals Pty Ltd was GBP 56,685 (2019: £68,124). On the date of sale of Deep
Blue Minerals Pty Ltd being 17 June 2020, this loan was assigned to Tectonic
Gold Plc. This loan is unsecured, interest free and not required to be repaid
on or before 30 June 2021.

(ii)    As at 30 June 2020, Mr Boynton had advanced A$25,000 (2019:
$25,000) to Signature Gold. This loan is interest free and is not required to
be repaid on or before 30 June 2021.

28.   CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

Exploration Lease Expenditure Commitments

In order to maintain the Company’s tenements in good standing with
Queensland Mines and Energy, the Company will be required to incur exploration
expenditure under the terms of each licence. It is likely that the granting of
new licences and changes in the terms of each licence will change the
expenditure commitment from a to time.

                                                        2020      2019    
                                                        GBP       GBP     
 Payable:                                                                 
 - within one year                                    280,374   312,652   
 - later than one year but not later than five years  679,507   937,204   
                                                      959,881  1,249,856  

29.   EVENTS AFTER THE REPORTING PERIOD

(i)    On 31 August 2020, the Company paid for 20 million shares in Kazera
Global Investment Plc priced at 0.5p per share, under the terms of the
transaction for the sale of Deep Blue Minerals Plc announced on 4 June 2020.
Funds for the share purchase were provided by way of a Director’s Loan from
B Boynton. The loan does not accrue interest.

(ii)    On 9 September 2020 the Company raised £402,800 via the issuance
of 146,472,721 shares at 0.275p per share. Following the raise, Tectonic has a
total of 844,035,467shares on issue.

In addition, subscribers to the raise were granted warrants on a one for one
basis whereby each warrant entitles the holder to subscribe for a new Ordinary
share at 0.7p per share at any time prior to the expiry of 30 days after the
Company publishes the results of its drilling program.

At the same time as the raise, The Company’s directors and executive elected
to forgo cash payment of fees and instead took 65.5 million options with a
strike price of 0.275p and having a notional face value of £180,000. Vesting
of the options was subject to the share price remaining above 1p for 30
consecutive days.

Other than as stated elsewhere in this report, Directors are not aware of any
other matters or circumstances at the date of this report that have
significantly affected or may significantly affect the operations, the results
of the operations or the state of affairs of the Company in subsequent
financial years.



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